Moody's and State Government Credit Downgrades

Wisconsin's credit rating: AAA

Thank you, Scott Walker, the Republican legislators, and Wisconsin voters! Without you, Wisconsin could be on the verge of a credit downgrade.

From Politico:

Some state and local governments that issue debt could face “significant stress” if market instability continues and see credit downgrades, Moody’s warned Wednesday.

Although most municipal issuers are “well insulated from shock,” Moody’s said there are some governments that could be weakened in a volatile market environment.

However, the agency does not anticipate widespread defaults, but opened the door to possible downgrades, although not by more than one level, Reuters reported.

...Moody’s announcement follows Standard & Poor’s Monday report that state and local governments with AAA ratings will not necessarily suffer from the United States’s downgrade.

“Pursuant to our criteria, the fiscal autonomy, political independence and generally strong credit cultures of U.S. states and local governments can support ratings above that of the U.S. sovereign,” S&P stated.

It's good to live in Wisconsin.